GTP 0.00% 12.0¢ great southern limited

Last trading day for DRP pricing, page-3

  1. 10,605 Posts.
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    The DRP is being underwritten. ie Potters has the right to any drp shares that eligible shareholders who did not elect to take up the share option and went for the cash were eligible for.

    In doing this GTP has not had to find any cash to fund the special dividend which was actually a distribution of franking credits.

    They are therefore able to distribute the whole amount as scrip protecting their cash but effectively diluting the existing sharings of those who did not participate.

    The dividend is fixed at 30c but the big attraction is the 10% discount that those electing to go with the drp are entitled to on an issue price calculated from the adjusted closing price for GTP over the last 30 trading days inclusive of today.

    Therefore, if you were confident that the company was sound it would be in the benefit of large shareholders electing to go with the drp to have the share price during the drp calculation period as low as possible so as to maximise the number of shares being issued to them (particularly the underwriter of the issue) though I am not alledging it is in fact them doing the selling atm...

 
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Currently unlisted public company.

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